❌ SB146
Codify the common law action for piercing the corporate veil
Current Status: In House Committee (Judiciary)
Summary
The bill codifies the common law action for piercing the corporate veil, defining the conditions under which a covered person can be held liable for the obligations of a covered entity. It specifies the burden of proof required for such claims and outlines exceptions where liability cannot be imposed. The bill applies to all claims initiated on or after its effective date.
Rationale
The bill introduces a legal framework that may increase liability for individuals associated with corporations, which could be seen as a restriction on economic freedom and property rights. Both LP and LPO principles emphasize minimal government interference in economic matters, suggesting a mixed alignment with the bill.
Risks and Concerns
- Potential for increased litigation against business owners
- May discourage entrepreneurship due to liability concerns
- Could lead to government overreach in corporate governance